38# MACD Strategy with pattern MACD Trading System


1. 365 Exponential Moving Average (365EMA)

2. 200 Simple Moving Average (200SMA)

3. 89 Simple Moving Average (89SMA)

4. 21 Exponential Moving Average (21EMA)

5. 8 Exponential Moving Average (8EMA)


MACD settings at

1. Fast EMA 5

2. Slow EMA 13


Horizontal Lines:

Three sets of horizontal lines above and below zero should be drawn on the MACD

window at levels as well as one on zero

1. Level +0.0015

2. Level +0.0030

3. Level +0.0045

4. Level –0.001

5 Level –0.0030

6.Level –0.0045

The MACD moves in certain patterns that when recognized can be very profitable

trades. Let me show you the very important ones first. By not following every signal

but only the ones that gives high probability trades through certain MACD patterns

serves as a filter.



The ones not familiar are not taken. This is the filter.

Countertrend trades can be dangerous as it involves going against the trend. When

going countertrend determine the resistance.

This pattern comes very regular especially A and D as the MACD has moved beyond

the 0.0045 level and are due for a correction and or trend reversal. B and C are trend

continuing patterns and are entered in the direction of the trend. Red circles indicates

entry signal and entry is made on the opening of the next bar.



The head and shoulder is another definite.


4Double top and bottom does not need any

introduction as it speaks in any timeframe.


5When the MACD comes down towards the

Zero line and turn back up just above the

Zero line it is normally a trend continuing

and should be taken and are normally a

strong move.



Pattern MACD

Comments: 1
  • #1

    Ken (Saturday, 22 March 2014 04:00)

    How is the EMAs associate with various MACD patterns? Please kindly share your opinion.

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